Each of our divisions is developing significant capabilities in data analytics and digital services to meet the specific needs of their customers, Mr Scott said. Or what if it tells you that customers dislike a certain product how will this influence your product development and marketing strategy? Digital transformation takes time, and is a series of evolutionary, and occasionally disruptive, steps. We work hard on ensuring we are one of the top participants working in-store, and we continue to get very high engagement scores.. Growth momentum was maintained in the B2B segment while continuing a strategic focus to improve better customer experience and operational excellence. In fact, he believes anyone who says CIO shouldnt have a focus on the day-to-day operations of IT are actually diminishing the roles importance. In this role you will be responsible for optimising data platform engineering and architecture, as well as designing and building data products. In fact, the essence of digital transformation is to become adata-driven organization, ensuring that key decisions, actions, and processes are strongly influenced by data-driven insights, rather than by humanintuition. Wesfarmers is also accelerating its digital transformation efforts across other parts of the group. IT should be helping marketing evolve the platforms, tools and assets it can deploy in the digital space, making it easier to exploit the opportunity to be had in digital, he says. Testing RFID blocking cards: Do they work? According to Harvey, certain loads are always going to be difficult for large corporates to move into the cloud. The authors outline four pillars of digital transformation: IT uplift, digitizing operations, digital marketing, and new ventures. Let's look at five of the most exciting digital transformation trends shaping the future of business and how they can help your business grow in 2022. This is where technology gives way to analytics the science that helps us give meaning to the data. Most of the digital transformation is being done by an in-house . Over the past five years, Wesfarmers Bunnings hardware store chain has been the main target of growth expenditure, according to the FY19 Strategy Briefing Day. I think setting up PagerDuty right allows us to reflect what those business services are which are critical, what are some of the components which make those business services, and how we align it back to the right people when there are issues, which is critical in this day and age., Madan said that OneDigital is also using PagerDuty to manage its incident response faster, and in doing so, show its internal customers - the other Wesfarmers businesses - that we are reducing the risk [because] we can respond to issues faster.. Read:From big data to AI - Where are we now, and what is the road forward? Challenges in the marketplace with fast changing customer and business expectations; Limited digital asset availability We are getting exceptional high take-up of that, and its an example of a win-win for both Coles and our store managers, Harvey claims. However, if the brains behind the worlds and Australias- biggest companies think it is worth it, you should definitely be looking at how to digitise aspects of your business. Typically, companies begin with IT uplift and digitizing operations, followed by digital marketing and new business building. University of Melbourne data strategy advisor Fiona Tweedie, who also took part in the panel, added that organisations should be active in interrogating the tools and data they use, taking into account the biases and assumptions that may arise. He suggests the real value is in preparing the organisation to take advantage of multiple options further down the track. He was heavily involved in the transformation under Wesfarmers and has maintained a high-profile and impactful role during and post-acquisition. The point here is not to be right, but to find better ways of being wrong. Wesfarmers is the largest conglomerate in Australia and parent company for Coles and other iconic Australian brands. That need for real-time connectivity is apparent in the wider range of mobility projects Harvey has been working on too. Recognize the emotional side of digital transformation. Do you treat it as though it is a part of them? But for Coles group manager of IT, Conrad Harvey, true business transformation comes from getting others to want it and lead the way. However, in FY20 Bunnings announced that would be outlaying $30 million on upgrading its online sales platform to enable click-and-collect. Baxby says Wesfarmers opted for Microsoft Dynamics for several important reasons. Delivering a net growth of 5.7% after-tax profit, Wesfarmers boss Rob committed to digital strategy and technology investments preparing the group for future growth. There are plenty of technology changes underpinning how Coles meets this objective. He said that establishing trust is also critical, as OneDigitals model sees it engage with customers of existing brands like Kmart, Target and Catch, all of whom have existing expectations of customer experience. Predictions for 2019 in data, analytics, and AI, This year's round-up of predictions from industry figures yields wisdom in: AI, data regulation, data governance, the state of the Hadoop market, open source and "the edge. Tweedie posed the ethical question of whether organisations are avoiding making assumptions on who the normal user is, emphasising that it is important to "[think] about who are the most vulnerable users and how could your project can affect them negatively". Digital transformation is not a destination; it's a permanent state of evolution. As Stanfords Erik Brynjolfsson noted, a major reason for the lack of productivity gains from new technologies, including AI, is the failure to invest in skills especially the lack of reskilling and upskilling once employees are in your workforce. Harvey downplays any questions about who should be responsible for the technology or leading the way, saying the impetus should be efficiency and customer delivery. It is very easy in IT to lose sight of the money that has to be made, the customer offers that have to be delivered and the customer propositions that have to be put together, he comments. One of the hiccups in the implementation was caused by the rollout of a new web interface, which forced sales to drop by 2 per cent over a couple of months. Time is Running Out, Motorola's handy Bluetooth device adds satellite messaging, Linux 6.2: The first mainstream Linux kernel for Apple M1 chips arrives, Sony's new headphones adopt WH-1000XM5 technology at a great price, The perfectly pointless $197 gadget that some people will love. Copyright 2023 IDG Communications, Inc. Equinix Australia's latest report on tech skills highlights the growing reskilling initiatives across Australian IT landscape, Westpac joins a consortium of industry experts towards delivering "responsible AI". Typically the CEO, or head of sales, leads such initiatives because of the requirement for investment, agility, but most importantly a team capable of running experiments to validate the new business opportunity. The inverse of this is, of course, Netflix, which is now a $122 billion-dollar company. Catch is an online marketplace which commenced operations in 2006 and was acquired by Wesfarmers in August 2019, bringing highly complementary digital retail and fulfilment capabilities. From an engineering perspective, Madan flagged a potential embrace of chaos engineering - a set of practices designed to improve system reliability by making it more resistant to failure when encountering unknown or unanticipated operating conditions. As the COVID-19 pandemic continues, executives are finding their companies' digital transformation more urgent than ever. View my verified achievement from Project Management Institute. View my verified achievement from Project Management Institute. OnePass The OnePass program provides members with additional benefits and convenience when shopping with the Group's retail businesses. Wesfarmers OneDigital Escola Superior de Propaganda e Marketing About A passionate and versatile leader, curious by nature and always hungry for learning. Broadly speaking, these capabilities will span four use cases: Wesfarmers is also accelerating its digital transformation efforts across other parts of the group. Rodney Zemmel. "The group's retail businesses will maintain their focus on meeting changing customer needs and delivering even greater value, quality and convenience for customers. The OnePass program provides members with additional benefits and convenience when shopping with the Groups retail businesses. Kmart sales increased $241m, more than offsetting a $67m decline in Target. Chanticleer is Australia's pre-eminent business column. The digital revolution forced every organization to reinvent itself, or at least rethink how it goes about doing business. Despite years of discussion, understanding what digital transformation means for established companies remains a daunting challenge. This pillar is different from the others in its focus on digital tools to interact and sell to customers. Although there is no indication of any reduction in digital investments, any impact of COVID-19 outbreak and underpayment troubles on technology roadmap seems unlikely yet although Target remains a concern. It is going to break. Wesfarmers has announced that Catch will join the Group's new data and digital division, now called Wesfarmers OneDigital. In the same way, a London cab driver or a Parisian bistro waiter might have in-depth knowledge of their customers and what they want, or a small business founder might know the 20 employees that make up her workforce rather well, without needing much tech or data. It is useful to remember this, because the real benefits from technology are not hard (i.e., cheaper systems or infrastructure), but soft (i.e., capturing valuable data). The framework outlines the four pillars of digital transformation we see today: IT uplift, digitizing operations, digital marketing, and digital businesses. Madan said that expectation informed the level of standards that we have to hold to offer these services, both to Wesfarmers brands and to those brands customers. Wesfarmers doesnt seem to be immune from the underpayment epidemic admitting underpayment at Target and Bunnings. Although every organization is unique, and there are salient differences between types of businesses, industries, and cultures, the fundamental meaning of transformation is not about replacing old technologies with new ones, or capturing high volumes of data, or hiring an army of data scientists, or trying to copy some of the things Google or Amazon do. In late spring 2020, we surveyed senior executives, digital transformation . This leads to costly upgrades. Its about so much more than your technology. Read:Predictions for 2019 in data, analytics, and AI. "When you think about customer centricity, particularly the use of behavioural data, it can be quite challenging to do that without data so there its relevance becomes a lot closer to the surface. It is no secret Bengaluru is the destination to recruit tech talent and Bunnings doesnt seem to be missing on that important tech link. Again, we've been fortunate enough that board members at all levels are actually enthused by that. Deloitte US | Audit, Consulting, Advisory, and Tax Services The results themselves become part of the new, richer, dataset, which will be augmented and improved with the findings of the process. He says the legacy systems at Blackwoods, combined with its extensive range of products, had combined to make it impossible for staff using a computer to check inventory in each of the seven Blackwoods distribution centres in real time. Wesfarmers Managing Director Rob Scott said the change would bring together the Groups pure digital businesses. Wesfarmers is closely monitoring the COVID-19 outbreak and its impact on product availability due to supply chain challenges. Most businesses have these opportunities at hand but seizing them requires a greater digital maturity than for an IT uplift or digitizing processes. Through all of his work, Harvey says innovation and ideas have come both from within IT, as well as across the organisation. She has implemented a set of best practices and processes to ensure that they are truly transforming digitally. Embracing change has become a mantra for CIOs looking to take a more strategic and innovative position within their organisation today. Finally, digital opens up many new opportunities for established companies. In short, the critical part of digital transformation is not digital but transformation. Our world has changed dramatically in the past two decades, and adapting your organization to these changes cannot be achieved overnight, or simply by buying new technologies, or collecting more data. 1. Digitization and digital transformation can expose internal weaknesses that leaders should acknowledge and take a hands-on approach to tackling. When completed, an IT uplift provides your company access to up-to-date tools that offer increased employee efficiency, lower IT maintenance costs and increased employee satisfaction. Which pillar is the right starting point for your company depends on your context, needs, but also your digital maturity. Lenovo Late Night I.T. Head of engineering Gurnam Madan told the PagerDuty Summit 2022 that OneDigital had the benefit of being a brand new organisation. The next generation of phishing attacks could come with unexpected delivery AI for Good: Westpac joins collective of industry experts backing responsible Kmart lures former Amazon VP to lead Catch, Gartner Forecasts Australian Enterprise IT Spending to Grow 3.6% in 2021. Digital transformation can mean a lot of different things. As part of the Bunnings digital transformation initiative, Wesfarmers says it is investing in specialised skill sets to accelerate its data and analytics capabilities. Wesfarmers has announced that Catch will join the Groups new data and digital division, now called Wesfarmers OneDigital. The program seeks to attract small and medium-size businesses by offering incentives to move their workloads to the cloud. I, Human: AI, Automation, and the Quest to Reclaim What Makes Us Unique. Including Catch, this amounted to AU$2.5 billion. Underpayment epidemic: Software Problem? We call this digitization, or the process of datafying human behavior, translating it into standardized signals (0s and 1s). The performance of the Industrial and Safety business was disappointing, reflecting the impact on Blackwoods earnings from ongoing investment in customer service and the enterprise resource planning (ERP) system, Scott said in Wesfarmers FY19 results briefing in August. Data & digital was one of the key areas of focus for the group, which said it will continue to invest in its e-commerce and efficiency capabilities as well as improving back-end systems and processes to support future growth. Wesfarmers Chemicals, Energy and Fertilisers, People development, diversity and inclusion, Chairman and Managing Director's 2022 sustainability message, Bunnings collaborates with Indigenous artists through exclusive plant pots range, Bunnings support for flood affected communities, Bunnings launches national battery recycling programs, Bunnings expands fleet with all electric trucks. While that isnt as dramatic as some of the gains seen in the American companies mentioned earlier, it is certainly still an impressive increase. Having run a corporate BYOD program for the past three years and maintained thousands of devices in its network, the latest step has been bringing BYOD to store managers. In its most basic form, this pillar can mean swapping out analog activities with digital ones. Having the stakeholders lead this means every day they are helping set and adjust the priorities based on the technical realities being encountered by my team.. As Ajay Agrawal and colleagues argue, even with the best AI, data science, and analytics, it is up to us humans to work out what to do with a prediction. Seizing these opportunities, some of which may be quite disruptive, requires both developing the innovation and digital capabilities to test and pivot to new sources of growth. During the period, the company also created a new data and digital division in which they appointed Nicole Sheffield to lead. How about in Australia? The point . According to Scott, Wesfarmers increased its investment in digital capabilities during the period, particularly in building out its data and digital ecosystem, which helped support the increase in online sales across its retail business. Following Wesfarmers' acquisition of the Coles Group in 2007, Harvey became IT group general manager across a team of more than 700 staff. As team members, its about how we can help innovate in areas that matter to both our customers and the wider team. Bunnings conducted a pilot program for click-and-collect at a store in Tasmania to ensure the new IT systems were working properly. In fact, the essence of digital transformation is to become a data-driven organization, ensuring that key decisions, actions, and processes are strongly influenced by data-driven insights, rather than by human intuition. The benefits of and reasons for the initiative need to be owned and communicated from the . Wesfarmers' managing director of industrial David Baxby is overseeing the implementation of Microsoft Dynamics 360 at Blackwoods. Harvey has had plenty of occasions to both influence and instigate innovation at the Australian supermarket giant during his 10-year tenure. This view extends to the question of who owns digital, as well as the rise of the marketing function in technology purchasing and implementation. In early 2022, the Club Catch subscription program was rebranded and repositioned as OnePass. I wouldnt trade that for anything because it helps keep the role real. After years of talking about lifting its digital capabilities, Wesfarmers is finally putting its money where its mouth is with IT implementation projects costing $75 million at Bunnings and in the industrials division. In June, Wesfarmers held its Strategy Briefing Day, outlining the key initiatives it had undertaken in FY19 and its plans for the years ahead. Marcelo brings positive energy to. Wesfarmers OneDigital sets its service standards Head of engineering Gurnam Madan. Against that I always need to balance the right levels of robustness, security and location that means Im delivering the right outcomes for customers.. For many companies, digital transformation starts with upgrading the companys IT infrastructure as well as mobile infrastructure, data lakes, and the cloud. How public utilities use analytics to improve interactions with customers (TechRepublic). In support of this, recent research from IDC indicates that organizations which had begun an ERP cloud migration as part of a digital transformation initiative prior to the COVID-19 pandemic fared far better than organizations that didnt. It will roll out click-and-collect nationally this financial year. In the final stage of the process, you can evaluate results or impact. We have a large number of our stores on assisted checkouts and are constantly growing new models of those checkouts, which allows us to offer new options to our customers. This means we can now get data out of the warehouse at a pace that was previously unthinkable, Harvey says. Wesfarmers OneDigital has set 'SaaS model' standards for itself, supported by service standards, engineering practices and tools that together create a foundation for the nascent digital and data arm to grow. Although not an exciting story as the big banks digital initiatives, the overall outlook for business and digital investments is positive notwithstanding Target and underpayment troubles. We interviewed four global leaders responsible for their organizations' digital transformation, each in different business and technical functions, industries, and geographies, and found that they were already approaching transformation in this waybut without a clear language and framing to guide them. From a PagerDuty perspective, I think the key thing there is how do we help cut the noise across so much information thats coming through to us, he said. While IT plays a pivotal role in informing people of new trends, technologies and opportunities, its crucial we make sure the solution, as it is formed, delivered and then run, has to be owned by the right person and right function in Coles.. Except this is not really the final step after you evaluate results, you need to go back to the data. Like in any journey, you need to decide where to go first. Digital is not purely about the colour of the screen on the website, its what assets we as a company should be building that allow us to leverage multiple marketing initiatives and across multiple touch points. On average, we would perceive that hosting most loads is still marginally cheaper internally than externally, but we expect that as the cloud fully matures that line is going to shift, he says. The goal here is to use digital tools, including more advanced technologies such as AI, 5G, and IOT, to streamline business growth. And you almost wonder whether it will ever model itself on that, because its always going to be a relatively low use case. Bunnings, Kmart and Officeworks continue to deliver topline growth for Wesfarmers while Target was below expectations. Some companies are already deep into this journey, but many other companies struggle with questions about how to upgrade the digital infrastructure. Wesfarmers a diversified corporation From its origins in 1914 as a Western Australian farmers' cooperative, Wesfarmers has grown into one of Australia's largest listed companies. Not surprisingly, it requires different resources, such as investing in capturing clean data, digital tools including artificial intelligence to understand customers, and omnichannel presence. Wesfarmers managing director Rob Scott has described the first half of the 2022 financial year as the "most disrupted period" for the company since the onset of COVID-19, due to extended government-mandated store closures and trading restrictions in Australia and New Zealand. Wesfarmers primary objective is to deliver satisfactory returns to shareholders through financial discipline and strong management of a diversified portfolio of businesses. The fundamental meaning of transformation is not about replacing old technologies with new ones, or capturing high volumes of data, or hiring an army of data scientists, or trying to copy some of the things Google or Amazon do. Wesfarmers industrial and safety division lands new CDTO To continue transformation efforts. The Challenge. This means were getting products through to our store fresher and in a more timely fashion, he says. Trevor Collens. Its problematic when companies decide to embark on a digital transformation agenda without having a clear definition, let alone vision, forwhat it means. Uses PagerDuty as part of its foundational setup. Get started by entering your email address below. Wesfarmers is spending another $100 million this year to build a "market-leading data and digital ecosystem," OneDigital, and develop its new subscription and delivery service, OnePass, which . Wesfarmers says COVID-19 disrupts H1 operations but bumps up online sales, Wesfarmers investment in digital assets pay off as online sales jump 57%, Kmart Group to shift its mainframe to the cloud, AWS skills training for 1,400 Kmart and Target employees, Do Not Sell or Share My Personal Information. Were not spending the time arguing who should be doing what.. One business strategy that Wesfarmers has adopted, Lowthorpe explained, is a one-day program focused on data analytics for leadership teams that teach them about data analytics, including the differences between advanced analytics and business intelligence reporting. On top of that, weve changed the digital interactions. By Milan Shetti, CEO Rocket Software, Since joining XPO in 2011 as CIO, Mario Harik has worked alongside founder Brad Jacobs to create a $7.7 billion business that has technology innovation in its DNA. "If we relied critically on large datasets, instead of removing human decision making and making decisions easier, sometimes you end up just reinforcing those biases.". Previously, these individuals would have been walking around with wads of paper constantly trying to refer documents that may or may not be up to date. This keeps them in the conversation and in the moment, but using the report as a way of informing the conversation on the shopfloor, Harvey explains. & # x27 ; s a permanent state of evolution the benefit of being wrong company depends on your,. Be owned and communicated from the underpayment epidemic admitting underpayment at Target Bunnings. Reclaim what Makes us Unique swapping out analog activities with digital ones hands-on approach tackling... The destination to recruit tech talent and Bunnings doesnt seem to be missing on that, weve changed digital... Us give meaning to the cloud Australian supermarket giant during his 10-year tenure the. 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